ASYAD Group's Oman Rail has announced plans to assign an international consultant to provide advisory services under a public private partnership scheme for the implementation of the Mineral Line project. The deadline for the submission of bids for the consultancy tender is January 7, 2018.

The National Programme for Enhancing Economic Diversification (Tanfeedh) is considering the PPP model for the funding of the Mineral Line project; aiming to benefit and commercialise the mineral resources located in Dhofar Governorate.

About 80% of the capital cost in the project is expected to come from private investors, which involves a 30% share from mining investors.

The Mineral Line project will comprise a single track railway spread from Thamrait in Dhofar Governorate reaching the Port of Duqm, via the mining hubs of Al Shuwaymiyah and Manji.  The first phase is 377km long, connecting the Port of Duqm with Al Shuwaymiyah and Manji. Phase 2 will involve a further 276km section linking mining areas in Thamrait with the junction at Amal constructed in the first phase.

The project is expected to support the transportation of about 60 million tonnes of mineral commodities each year, from several sites in Dhofar to processing plants in the Duqm Special Economic Zone (SEZ) or for export via the Port of Duqm. It will also ease the transportation of roughly 1 million tonnes of oilfield equipment from the port to Duqm.

Moreover, the proposed line will be able to transport around 3 million tonnes of industrial goods, and 15 million tonnes of merchandise, including foodstuff and agricultural products, to destinations in Wusta and Dhofar governorates.

ASYAD, the Sultanate’s logistics development flagship, stated:

“ASYAD’s Oman Rail is exploring the development of a Public-Private Partnership (PPP) for the Mineral Line railway operation. We are now floating a tender for a PPP Advisor to assist us in this development.”